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British Columbia Hydro and Power Authority, 333 Dunsmuir Street, Vancouver BC V6B 5R3 www.bchydro.com
Tom A. Loski
Chief Regulatory Officer Phone: 604-623-4046 Fax: 604-623-4407 [email protected]
January 21, 2016 Ms. Erica Hamilton Commission Secretary British Columbia Utilities Commission Sixth Floor – 900 Howe Street Vancouver, BC V6Z 2N3 Dear Ms. Hamilton: RE: British Columbia Utilities Commission (BCUC or Commission)
British Columbia Hydro and Power Authority (BC Hydro) PUBLIC Site C Clean Energy Project – Progress Report No. 1 F2016 – Q2 (July to September 2015)
BC Hydro writes to provide its public Site C Clean Energy Project Progress Report No. 1. Commercially sensitive and contractor-specific information has been redacted.
A confidential version of the Report is being filed with the Commission only under separate cover.
For further information, please contact Geoff Higgins at 604-623-4121 or by email at [email protected].
Yours sincerely,
Tom Loski Chief Regulatory Officer st/ma
Enclosure (1)
Site C Clean Energy Project
Quarterly Progress Report No. 1
F2016 Second Quarter
July 2015 to September 2015
PUBLIC
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page i
Table of Contents
1 Project Status ..................................................................................................... 1
1.1 Overview and General Project Status ....................................................... 1
1.2 Major Accomplishments, Work Completed, Key Decisions and Key Issues ........................................................................................................ 3
1.2.1 First Nations Consultation ........................................................... 3
1.2.2 Litigation ..................................................................................... 3
1.2.3 Permits and Government Agency Approvals .............................. 4
1.2.4 Engineering and Construction..................................................... 8
1.2.5 Safety ....................................................................................... 12
1.2.6 Environment.............................................................................. 13
1.2.7 Employment .............................................................................. 17
1.2.8 Community Engagement & Communication ............................. 18
1.3 Key Procurement and Contract Developments ....................................... 21
1.3.1 List of Major Contracts Awarded in the Quarter ........................ 22
1.3.2 Large Contracts to Date ............................................................ 23
1.3.3 Contract Management .............................................................. 23
1.4 Plans During Next Six Months ................................................................ 24
1.5 Impacts on Other BC Hydro Operations .................................................. 24
1.6 Site Photographs..................................................................................... 24
2 Project Schedule .............................................................................................. 25
2.1 Project In Service Dates .......................................................................... 25
3 Project Costs and Financing ............................................................................ 26
3.1 Project Budget Summary ........................................................................ 26
3.2 Project Expenditure Summary ................................................................ 26
3.3 Internal Project Financing versus External Borrowings To Date ............. 27
4 Material Project Risks ....................................................................................... 27
List of Tables
Table 1 Project Status Dashboard .................................................................. 2
Table 2 Litigation Status Summary ................................................................. 4
Table 3 Site Prep Works Permits and Authorizations ...................................... 5
Table 4 General List of Future Permit Requirements ...................................... 6
Table 5 Preliminary Construction Schedule .................................................... 9
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page ii
Table 6 Scope of Main Civil Works Contract ................................................. 11
Table 7 Quality Management Non-Conformity Report Metrics ...................... 12
Table 8 Safety Metrics .................................................................................. 13
Table 9 Major Project Contracts and Delivery Models .................................. 22
Table 10 Major Project Contracts Awarded ..................................................... 23
Table 11 Key Milestones ................................................................................. 24
Table 12 Project In-Service Dates ................................................................... 25
Table 13 Project Budget Summary ................................................................. 26
Table 14 Total Project Expenditure Summary (Nominal $ million) .................. 26
Table 15 Material Project Risks ....................................................................... 28
Appendices
Site Photographs Appendix A
Summary of Individual Contracts Exceeding $10 million Appendix B
Project Progression Appendix C
Detailed Project Expenditures Appendix D
Workforce Overview Appendix E
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 1
1 Project Status
This Quarterly Progress Report No. 1 (Report No. 1) provides information
concerning the Site C Clean Energy Project (Project) covering the period from
July 1, 2015 to September 30, 2015.
1.1 Overview and General Project Status
The Project will construct a third dam and hydroelectric generating station on the
Peace River in northeast B.C. to provide 1,100 megawatts of capacity, and produce
about 5,100 gigawatt hours per year. In December 2014, the Project received
approval from the provincial government to proceed to construction. The Project is in
Implementation Phase and construction commenced July 27, 2015.
On the north bank of the dam site, construction of access roads is underway, the
material disposal site has been prepared and material is now being excavated and
moved to the disposal site to stabilize the north bank. On the south bank of the dam
site, construction of access roads and a new rail siding has begun. Over
250 hectares of clearing has been completed between the north and south bank of
the dam site and logs are being delivered to local mills. On the South Bank, some
logs are being temporarily stored until the Peace River Bridge is constructed. In
addition, BC Hydro is currently in discussion with a preferred proponent regarding
the utilization of waste wood. The site preparation for the Worker Accommodation
Camp is underway with site grading and clearing substantially complete, foundation
piles and underground utility lines are being installed and a temporary work camp is
ready for occupation.
Overall, the progression of work is on track to achieve the BC Hydro Board of
Directors (Board) approved in-service dates; the first unit is expected to come on
line in December 2023 and final Project completion is expected in November 2024.
Costs are still forecast to come within the Board approved P50 amount
($8.335 billion).
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 2
Table 1 provides a dashboard based on the Project status as at
September 30, 2015.
Table 1 Project Status Dashboard
Green: No Concerns; Amber: Some Concerns but in Control; Red: Serious Concerns
Status as of: September 30, 2015 Overall:
Overall Assessment
The Project is on track for overall scope and schedule. The Project is on track with the Project completion date of November 2024.
1
Schedule ISDs The overall schedule and progress remains on track to achieve the planned In Service Dates.
Cost Cashflow projections have shifted out but the overall cost forecast remains on track:
Total Project cost is still forecast to be within the Board approved P50 amount of $8.335 billion. This excludes the Treasury Board Reserve of $440 million.
Allocations of contingency in respect of Year 1 activities are $85.9 million
There have been no draws on reserve to date
Environmental No material environmental incidents occurred to September 30, 2015 that required reporting to permitting agencies.
Risks All risks are being managed and treatments are in place. For details refer to section 4 Material Project Risks below.
First Nations Impact Benefit Agreement (IBA) offers have been made to all Treaty 8 First Nations significantly affected by the Project.
Regulatory and Litigation
Decisions made by the Crown may be subject to additional judicial reviews by First Nations and others who continue to oppose the project.
Safety Morgan Construction & Environmental Ltd., ATCO Two Rivers Lodging Group and Paul Paquette and Sons have prime contractor responsibilities and are executing all work under their Safety Management Plans.
There were 0 Level 1 & 2 safety incidents in the quarter ended September 30, 2015.
There were 10 WorkSafeBC Orders written during the reporting period. All were successfully closed within the reporting period.
1 The Board approved In Service Dates for total Project completion November 2024.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 3
1.2 Major Accomplishments, Work Completed, Key Decisions and Key Issues
1.2.1 First Nations Consultation
Pursuant to the Environmental Assessment Certificate and Federal Decision
Statement, BC Hydro is required to consult with 13 Aboriginal groups with respect to
the construction stage of the Project. This consultation includes provision of
information on construction activities, support for the permit review process, and
review and implementation of mitigation, monitoring and management plans, and
permit conditions.
Efforts are ongoing to conclude IBAs with First Nations, and discussions are ongoing
with respect to directed procurement.
Four contracts have been awarded to Aboriginal businesses for current work
associated with site preparation. BC Hydro is in discussion with other Aboriginal
businesses for work scheduled for late 2015 and early 2016.
1.2.2 Litigation
Of seven legal challenges initiated to date, two were discontinued, four were
dismissed, one has yet to be heard, and three appeals were filed. The details are
summarized in Table 2 below.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 4
Table 2 Litigation Status Summary
Outcome Date
Federal Court : Federal Environmental Approval
Mikisew Cree
Athabasca Chipewyan
Two judicial reviews were discontinued after agreements were reached with BC Hydro and the federal government.
July 16, 2015
Peace Valley Landowner Assoc.
Dismissed August 28, 2015
Prophet River First Nation
West Moberly First Nations
Dismissed
Appeal filed
August 28, 2015
September 30, 2015
B.C. Supreme Court : Provincial Environmental Assessment Certificate
Peace Valley Landowner Assoc.
Dismissed Appeal filed
July 2, 2015 July 30, 2015
Prophet River First Nation
West Moberly First Nations
Dismissed Appeal filed (Post Reporting Period)
September 18, 2015
October 19, 2015
B.C. Supreme Court : Provincial Permits
Prophet River First Nation
West Moberly First Nations
Injunction application dismissed
Hearing of Petition
August 28, 2015 November 17 to 20, 2015
* Status of September 30, 2015.
1.2.3 Permits and Government Agency Approvals
Background
In addition to the Environmental Assessment Certificate and the Federal Decision
Statement, provincial permits and federal authorizations are required to construct the
Project. Timing of the application for these permits and authorizations is staged and
aligned with the construction schedule, availability of detailed design information,
and by Project component.
Provincial Permits
The strategy for Site C provincial permits involves a phased approach to the
submission of applications to the Ministry of Forest, Lands and Natural Resource
Operation (FLNRO) based on Project components and construction schedule. The
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 5
first batch of permits pursuant to the Land, Water, Wildlife, Forest and Mines Acts
were sought for the dam site area, the reservoir (i.e., for vegetation clearing), and
quarries/pits under the Land, Forest, Water, and Wildlife Acts. These permits were
issued July 7, 2015.
Heritage Conservation Act permits were issued July 14, 2015 and Mines Act permits
were issued on July 24, 2015. These permits were issued for site preparation
activities (i.e., vegetation clearing, road access) which commenced July 27, 2015.
Table 3 below provides a list of permits and authorizations that have been issued for
site preparation works at the dam site, for vegetation clearing and quarries/pits.
Long-term permit requirements such as removal of land from the Agricultural Land
reserve and the Water Licence for diversion and storage are also included.
Below is a list of Permits and Authorizations issued for Site Preparation Works at the
Dam site, the Water Licence and Agricultural Land Reserve.
Table 3 Site Prep Works Permits and Authorizations
Required Permit/Approval Process Initiation/ Application Date Approval Date
B.C. EAC
Federal Decision Statement (revised date)
Submitted EIS January 2013
October 14, 2014 – EAC
November 25, 2014 – FDS
Water Licence-
Diversion & Storage
Fish Passage
2008
April 2015
Forecast: December 31, 2015
Crown Land tenures April 2014 July 7, 2015
Water Act (section 8&9) April 2014 July 7, 2015
Occupant Licence to Cut April 2014 July 7, 2015
Mines Act (Notice of Works) April 2014 July 7, 2015
Wildlife Act April 2014 July 7, 2015
Heritage Conservation Act November 2014 July 14, 2015
Fisheries Act Authorization October 2014 September 30, 2015
Navigation Protection Act Authorization October 2014 September 29, 2015
Removal of land from Agricultural Land Reserve December 2014 April 2015
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 6
The Water Licence for diversion and storage is currently under review with the Water
Comptroller’s office. The review includes a written hearing with two rounds of
comments and responses. BC Hydro will submit its final responses by
November 20, 2015 to the Water Comptroller.
Federal Authorizations
Navigation Protection Act and Fisheries Act authorizations for site preparation works
were issued on September 29 and 30, 2015, respectively.
Future Provincial Permits
Table 4 below lists the general categories of future provincial permit requirements for
the different Project components.
Table 4 General List of Future Permit Requirements
Project Component Key Permit Requirements Required Date
Main Civil Works Water License
1st Leaves to Commence
Wildlife Act (fish, amphibian salvage)
Water Act (section 8)
December 31, 2015
April 1, 2016
May 2016
July 2017
Highway 29 Re-alignment (Cache Creek section)
Other sections
Land, Water, Wildlife, Heritage Conservation, Forest Acts
Land, Water, Wildlife, Heritage Conservation, Forest Acts
May 2016
Fall 2016 and beyond
Transmission Land, Water, Wildlife, Heritage Conservation, Forest Acts August 2016
Quarries/Pits Land, Water, Wildlife, Heritage Conservation, Forest, Mines Acts
Spring 2016
Mitigation Works (e.g., Fish and Wildlife)
Water Act, Wildlife Act TBD
* Dates are preliminary and should not be used for final negotiations or planning purposes.
Assumptions
Permit requirements listed are general in nature. Additional permits may be identified
and required under the various acts as detail design and construction proceeds for
the different Project components
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 7
The date required is subject to change based on changes to the construction design,
methods and/or schedule and the consultation process currently being discussed
with the Province, DFO and Transport Canada
Future applications include Land, Water, Wildlife, Forest, Mines, and Heritage
Conservation Act permits for the Main Civil Works, transmission line, Highway 29
re-alignment, quarries and pits, mitigation and monitoring works (e.g., fish contouring
for minimizing the risk of fish stranding). Weekly meetings with FLNRO are
continuing to ensure that these future applications meet the scheduling needs of the
Project.
BC Hydro and FLNRO meet weekly to discuss the permit application process, time
required for review and consultation with Aboriginal groups, the status of specific
applications and when permits will be issued to minimize the risk of delay to
construction.
Given the extensive consultation required with First Nations, the level of detailed
technical information required and the timing and capacity of resources available to
review permit applications, a review by senior officials at Forest, Land and Natural
Resource Operations and BC Hydro is underway. It is expected that resources from
Forest, Land and Natural Resource Operations will be required to clarify the
technical requirements and simplify documentation to further enhance the
consultation process with First Nations.
Future Federal Authorizations
The Navigation Protection Act application for construction and reservoir filling is
complete and Transport Canada will be issuing authorizations and consulting on
components. For the Fisheries Act authorization, BC Hydro initiated first steps and
submitted a Request for Review for Major Civil Works on September 22, 2015, and
is preparing the application which also includes reservoir filling. Regular meetings
are scheduled with Department of Fisheries and Oceans and Transport Canada.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 8
1.2.4 Engineering and Construction
1.2.4.1 Engineering
The Engineering team assisted with issuing the Main Civil Works technical
addendum, including the schedule of quantities and prices at the end of July 2015.
In addition, an Engineers Estimate was prepared based on the Main Civil Works
specifications, drawings and draft Contract. The first set of Construction drawings
will be issued on Contract Award.
The implementation design of the Generating Station and Spillway commenced in
September 2014 and is expected to continue through 2023. Hydraulic model testing
of the spillway, approach channel, power intakes and tailrace was completed over a
three year period from May 2012 to July 2015, when the physical models were
decommissioned. The final report is near completion, pending a final review by the
Site C Integrated Engineering Team.
Proposals were received for the Turbine-Generator contract in July 2015. Testing of
the turbines in the independent model testing facility also commenced in July and is
expected to be completed by the end of December 2015.
Definition design for the 500 kV transmission lines (5L5 and 5L6), Peace Canyon
500 kV Gas Insulated Switchgear and Site C Substation commenced in April 2015
and is expected to conclude in November 2015. Implementation design for the
construction power, construction telecom and temporary substation commenced in
January 2015 and is expected to conclude in December 2015.
1.2.4.2 Construction
Construction for the Site C project commenced July 27, 2015 with initial site
preparation work, including the mobilization of contractors to site along with
installation of access gates and signage. Construction activity has steadily increased
and there are now approximately 665 workers involved in Site C project construction
over the month of September. Refer to Table 5 below for the preliminary
construction schedule.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 9
Table 5 Preliminary Construction Schedule
* Schedule as of July 2015.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 10
North (Left) Bank Site Preparation
Clearing, vegetation removal and grading was started in August 2015 on the north
bank of the dam site to create space for new access roads, worker accommodations
and material excavation and disposal area.
Construction of the North Bank Access Road and River Road commenced in
August and is progressing according to plan;
Approximately 161 of 220 hectares have been cleared on the North Bank and is
progressing according to plan; and
Preparation of the left bank excavation area and the material disposal area
commenced in August 2015. About 200,000 cubic meters of excavated material
has been placed in the disposal area.
South (Right) Bank Site Preparation
South Bank site preparation work has commenced in September 2015 and includes
vegetation clearing, construction of new access roads, a temporary sub-station pad,
and a new rail siding.
About 250 of 620 hectares have been cleared on the South Bank and
progressing ahead of plan; and
The new Septimus rail siding is progressing slower than planned because of
some challenging soil conditions but is expected to be completed on time.
Worker Accommodation
A Limited Notice to Proceed was issued to the contractor in June 2015. This allowed
the contractor to conduct site surveys and other investigative works and to advance
the design development and construction planning.
The contractor commenced on-site construction on August 5, 2015 with
clearing and site grading activities. Site grading is expected to be completed on
time. Approximately 200,000 cubic metres of site grading is complete;
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 11
Manufacturing dormitory units started in August and the first units are expected
to be completed for transport by October 2015;
Underground utilities including water and sewer lines are being installed.
A temporary 300 person work camp has been installed for the contractor’s
workers and is ready to be occupied; and
The Worker Accommodation contract was executed in September 2015.
Ministry of Transportation and Infrastructure Public Road Upgrades
The Ministry of Transportation and Infrastructure’s awarded a contract to Al Simms
and Sons for the public road improvements on 240 Road and 269 Road. This work is
planned to be completed in November 2015.
Main Civil Works
The scope of the Main Civil Works contract is described in Table 6. It includes the
construction of the following major components:
Table 6 Scope of Main Civil Works Contract
Component Description
Diversion works Two approximately 11 metre diameter concrete-lined tunnels approximately 750 metres in length
Excavation and bank stabilization
Approximately 26 million cubic metres of overburden and rock excavation
Relocation Relocation of surplus excavated material (including management of discharges
Dams and Cofferdams A zoned earth embankment 1,050 metres long and 60 metres above the present riverbed and stage 1 and 2 cofferdams
Roller-Compacted Concrete Buttress - 800 metres long with 2 million cubic metres of concrete
It is anticipated that the contractor would mobilize to site soon after contract award
(January 2016) and be on-site until the end of 2024. The anticipated timeline of
major construction milestones is outlined in Table C-2 in Appendix C.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 12
Quality Management
Implementation and monitoring of Quality Control and Quality Assurance Plans are
required of all contractors. Table 7 below identifies quality management
non-conformity instances during the quarter ended September 30, 2015.
Table 7 Quality Management Non-Conformity Report Metrics
Contract Contractor Reported
this period Closed this
period Reported to
date Closed to
date
North Bank Site Preparation
Morgan Construction & Environmental
2* 0 2 0
South Bank Site Preparation
Duz Cho Construction
0 0 0 0
* The two non-conformity incidences reported include: Testing Frequency and Embankment Fines Content.
1.2.5 Safety
There has been one contractor fatality since the start of construction due to personal
health issues. Another worker suffered a serious health event and required
emergency services. Neither event was related to work standards.
A public fatality also occurred in conjunction to a Project Open House event in
Dawson Creek in July. The deceased individual was believed to be targeting the
open house with public mischief intent and was engaged by police outside the
Project’s open house event. BC Hydro staff and contractors inside the open house
remained safe, and counselling services were made available in the weeks following
the event. An internal BC Hydro safety investigation was also undertaken with
recommendations relating to monitoring, security and safety for future engagements
and meetings with stakeholders and the public. Response to this event has included
escalation of security at the construction site and other key locations. Table 8 below
presents the safety metrics accumulated across all project activities commencing
with the start of construction in July 2015.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 13
Table 8 Safety Metrics
Description Reported this period Reported since
inception
Fatality & Serious Injury1 0 0
Severity (number of calendar days lost due to injury per 200,000 hours worked)
2 2
Lost Time Injury Frequency (number of injuries resulting in lost time per 200,000 hours worked)
2 2
Contractor near miss reports 10 10
Lost time incidents 2 2
Equipment/property damage reports 1 1
1. Of the contractor near miss reports, 70 per cent were Level 3 type (lowest severity), and 60 per cent of the reports related to equipment or vehicle use.
1.2.6 Environment
Mitigation, Monitoring and Management Plans
In accordance with Environmental Assessment Certificate conditions, environmental
management, mitigation and monitoring plans have been developed. Draft plans
were submitted to regulators, local governments and potentially affected Aboriginal
groups. Comments were incorporated into the final plans, which were submitted on
June 5, 2015. The list of plans is as follows:
Aboriginal Plant Use Mitigation Plan
Aboriginal Training and Inclusion Plan
Business Participation Plan1
Construction Environmental Management Plan
Construction Safety Management Plan
Cultural Resources Mitigation Plan
Emergency Services Plan
Fisheries and Aquatic Habitat Management Plan
1 Excludes health events unrelated to work standards.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 14
Healthcare Services Plan
Heritage Resources Management Plan
Housing Plan and Housing Monitoring and Follow-Up Program
Labour and Training Plan
Vegetation and Wildlife Mitigation and Monitoring Plan
Vegetation Clearing and Debris Management Plan
Additional plans are in the development process, as required by Environmental
Assessment Certificate conditions. The Fish and Fish Habitat Monitoring and
Follow-up Program and the Agriculture Monitoring and Follow-up program are in
final stages of preparation and will be submitted to regulators on October 23, 2015.
Overall, a compliance database has been developed to monitor and track
compliance with all Environmental Assessment and permit conditions. The database
is undergoing quality assurance review and supporting evidence and data is being
compiled to support future reviews and provide regular reporting.
Environmental Compliance Inspections
Inspectors from Environmental Assessment Office, Canadian Environmental
Assessment Agency and Forest, Land and Natural Resource Operations attended a
two day inspection of Site C construction on September 22 to 23, 2015. The
inspection included a Site C orientation, an overview of the whole project and
detailed discussion of current activities, including permit requirements. The
following potential compliance concerns were noted at meetings following the
inspections:
Erosion and Sediment Control in L3 Ravine
Erosion and Sediment Control on South Bank
Many large areas of open soil that could become infested by invasive plants
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 15
Spill Kits not in all vehicles
Wildlife Attractants
Speed limits are not posted on the north bank
Some wood debris piles may not meet the spacing requirements for burning
Preventive and corrective actions will be implemented to address these concerns.
The inspectors noted the following good practices:
“Inspected Leak and Weed Free” stickers on Paul Paquette and Sons vehicles;
Water Act Section 8 permits and water withdrawal logs on water trucks;
If workers and staff didn’t know the answer to a question, they didn’t guess at
the answer and referred to someone who has the knowledge to provide a
correct response; and
Site C compliance data base instills confidence that the owner is aware of the
requirements and is working to meet them.
Inspections are expected to take place twice per year and are over and above the
independent environmental monitoring for the project.
Heritage
In accordance with a number of Environmental Assessment Conditions and the
Federal Decision Statement, the Site C Heritage Management Resource Plan
addresses the measures that will be used to mitigate the adverse effects of the
Project on heritage resources. Measures that were taken in the last quarter included
ongoing work in the 2015 Heritage Work Plan set to be completed by late October.
The work included archaeological impact assessments and systematic data recovery
at known heritage sites in the Project Area Zone in accordance with B.C. Heritage
Conservation Act requirements.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 16
In addition, where known archaeological sites were altered through construction
activities and where required by the Heritage Conservation Act Site Alteration
Permit, mitigation involving concurrent monitoring or surface inspections of known
archaeology sites was performed.
Stakeholder Consultation for Agricultural Mitigation and Compensation Plan
Agricultural stakeholder consultation is being planned to address Environmental
Assessment Certificate Condition 30 requirements and to support the development
of the Agriculture Mitigation and Compensation Plan. BC Hydro has established a
Consultation Steering Committee comprised of staff from BC Hydro, the Ministry of
Agriculture, and the Ministry of Energy and Mines to guide consultation. A discussion
guide and feedback form is being developed to include information items and
consultation topics that will inform stakeholders and request feedback on the
proposed framework for the Agricultural Mitigation and Compensation Plan
Framework, and proposed options for the structure of the $20 million Agricultural
Compensation Fund, including governance, eligibility criteria, and payment stream
options.
The consultation period is planned for November 2015 to the end of January 2016 to
accommodate the seasonal availability of farmers and the agricultural industry.
Groups invited to participate in consultation will include: Regional agricultural
associations; regional governments, agencies, research and educational
organizations; affected agriculture land owners and tenure holders, and First Nations
groups.
Following the consultation period, a Consultation Summary Report and
Consideration Memo will be produced documenting input received from agricultural
stakeholders during the consultation period. The input received will be considered in
the development of the Agricultural Mitigation and Compensation Plan framework,
and in the subsequent preparation of the draft and final plan.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 17
1.2.7 Employment
During the first three months of construction, activity generally consisted of site
preparation, public road improvements and construction of the worker
accommodation facility.
There were approximately 665 workers involved in Site C project construction over
the month of September including construction, monitoring, environmental mitigation
and studies, public road improvement and on-site construction management. Of
these 665 workers, approximately 475 were from B.C. Employment will continue to
ramp up as construction progresses over the coming months and years. Refer to
Appendix E for workforce information.
Contractors will post Site C employment opportunities on the WorkBC website. This
provides a central repository for all Site C job opportunities, including apprenticeship
opportunities. Prospective candidates can access information about available Site C
job opportunities on the WorkBC website as well as BC Hydro’s Job Opportunities
section on the Site C Project website.
BC Hydro, through commercial contracts, requires contractors to collect and to
provide certain worker information data, including the number of workers being
hired, their job categories and the number of apprentices/trainees. BC Hydro is
currently working with contractors to implement a process that will enable this worker
information data to be collected and submitted to BC Hydro electronically on a
monthly basis. It is expected that contractors will submit their monthly data by
mid-month of the following month. Upon receipt of this data, BC Hydro will collate
the data received in order to report on the progress being made in the following
areas:
Diversity (i.e., underrepresented groups – Aboriginals, women, visible
minorities, persons with disabilities) as reported by major contractors; and
B.C. hires as reported by major contractors.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 18
Statistics collected will identify the number of workers, by job category as well as the
number of apprentices/trainees, as reported by major contractors. BC Hydro expects
to be in a position to provide specific data around these foregoing items by the next
quarterly reporting period.
1.2.8 Community Engagement & Communication
Local Government Liaison
BC Hydro concluded community measures agreements with the District of Taylor
(January 2014) and the District of Chetwynd (January 2013). BC Hydro met with
senior staff from the District of Taylor and the District of Chetwynd to review the
implementation status of their respective community measures agreements and
provided each community with an update report documenting that status.
Throughout spring and summer 2015, BC Hydro staff presented to municipal
councils to provide project updates for the communities of Fort St. John, Taylor,
Hudson's Hope, Peace River Regional District (PRRD), Chetwynd, Tumbler Ridge,
Prince George, Pouce Coupe and Mackenzie. Final discussions are underway with
the City of Fort St. John to achieve a legal agreement addressing community
mitigation measures. Negotiations are also continuing with the District of Hudson’s
Hope and the PRRD to achieve an agreement to address community mitigation
measures primarily during the construction period. A separate Legacy Benefit
Agreement was reached with the PRRD in 2014 that will provide legacy benefit
payments for 70 years once the Project is operational.
Business Liaison and Outreach
Job Fairs were originally scheduled in the last week of July in Tumbler Ridge,
Chetwynd and Fort St. John, but were postponed due to the security incident at the
public open house in Dawson Creek. Following a security review and an updated
security plan, the Job Fairs were then planned in combination with
Business-to-Business Networking sessions in the same communities from
October 5 to 8, 2015.
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 19
Community Relations and Consultation
A public information program and open houses to communicate upcoming Site C
construction activities commenced in early July. Open Houses were held in Taylor,
Fort St. John, Chetwynd, Hudson’s Hope and Dawson Creek. This program was
supported by broad notification including advertisements, a four-page brochure that
was delivered to households in the region, a new Construction Activities section of
the project website and media relations. With construction underway, Construction
Bulletins are now issued every two weeks and posted to the new Construction
Activities section of sitecproject.com. As of September 30, 2015, there are
2,013 subscribers who receive Construction Bulletins, and 4,203 who receive overall
project updates.
Public enquiries have increased with the vast majority focused on jobs and business
opportunities, but also some initial complaints about construction impacts, including
noise. From July 1 to September 30, there have been a total of 622 public enquiries.
Of these, 83 per cent of the enquiries were related to seeking a job on the
construction of Site C (389 enquiries) or seeking business opportunities with the
project (134 enquiries). 20 enquiries were complaints about construction including
noise and traffic and the balance were general enquiries such as presentation
requests, and questions about project timelines and procurement.
Enquiries come into BC Hydro via email ([email protected]), phone calls and
visitors to consultation office in Fort St. John, and enquiries from project team
members or local MLAs.
Communications and Government Relations
Media coverage of the Site C project has remained steadily high with an average of
209 media stories per month from July to September. A brochure titled ’60 Days of
Construction’ was published during the week of Union of B.C. Municipalities to
highlight the construction progress and number of jobs and contractors on site.
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Site C Clean Energy Project
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Public enquiries have increased, with the vast majority focused on jobs and business
opportunities, but also with some initial noise complaints.
Housing Plan and Housing Monitoring and Follow-Up Program
BC Hydro has established Memorandum of Understanding agreements with the
following three organisations to support the provision of emergency or transitional
housing:
$25,000 to Skye’s Place, a second stage housing program for women with
children who are leaving abusive relationships;
$25,000 to the Meaope Transition House for Women that provides a 24-hour
safe and secure shelter for women who are victims of violence or abuse, and
their children; and
$200,000 to the Salvation Army Northern Centre of Hope to support shelter and
transitional beds.
These agreements commit a total of $250,000 to support emergency or transitional
housing providers in the City of Fort St. John. Once funds are transferred, BC Hydro
will have addressed Measure 5 of the Housing Plan: Emergency or Transitional
Housing Provider Contribution and Condition 48 of the Environmental Assessment
Certificate.
In accordance with Environmental Assessment Certificate Condition 48, BC Hydro is
to expand affordable rental housing supply in Fort St John by building 50 rental units
to be owned and operated by BC Housing and with 40 units to be used by Site C
workers until the project construction is complete. Upon completion of Site C, the
40 worker housing units will be made available to low/moderate income households.
In April 2015, BC Housing completed a Request for Information seeking to
understand market capacity for construction of energy efficient housing and
availability of a suitable site for 50 units. BC Housing reviewed the findings of the
Request for Information with BC Hydro and stated they were satisfied that there is
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
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sufficient capacity in the market for construction of an R2000 energy efficient
building and adequate available sites.
Labour and Training Plan
In accordance with Environmental Assessment Condition 53, BC Hydro is to provide
additional day-care spaces in Fort St. John to increase spousal participation in the
labour market. BC Hydro will provide a capital funding contribution toward a new
facility or expansion of an existing facility to include approximately 37 daycare
spaces.
BC Hydro has initiated discussions with the Ministry of Education regarding locating
child care at a new elementary school that the Ministry is building in Fort St John.
Health Care Services Plan and Emergency Service Plan
BC Hydro has begun work with the Northern Health Authority on the development of
scope for a Project Health Clinic service provider. In addition, the Project team has
met with B.C. Ambulance Service local staff to provide information about the
Project’s plan for first aid and emergency transport of workers and receive feedback
on plans for health care services for Project workers.
Properties Acquisitions
As of September 30, BC Hydro has entered into agreements with three of six land
owners, and is continuing negotiations with the remaining three owners for the land
required by end of 2015. Settlements are expected to be achieved by the end of
October 2015. In this reporting period, the properties team also secured 53 of
53 consents and six of nine right away agreements for upgrades to the BC Hydro
distribution lines, with the final three agreements expected in October.
1.3 Key Procurement and Contract Developments
The Project procurement approach was approved by the Board of Directors in
June 2012 for the construction of the Project. The procurement approach defined the
PUBLIC Quarterly Progress Report No. 1
F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
Page 22
scope of the major contracts and their delivery models, as summarized in Table 9
below.
Table 9 Major Project Contracts and Delivery Models
Component Contract Procurement Model Anticipated Timing
Worker Accommodation Worker Accommodation and site services contract
Design-Build-Finance-Operate-Maintain
Completed
Earthworks Site Preparation contracts Predominantly Design Bid Build Various, through F2016
Main Civil Works contract Design-Bid-Build Contract Award: Q4 F2016
Reservoir Clearing Multiple reservoir clearing contracts to be awarded over 7-8 years
Design-Bid-Build One agreement awarded for the Lower Reservoir
Generating Station and Spillways
Turbines and Generators contract Design-Build Contract Award: Q4 F2016
Generating Station and Spillways contract
Design-Bid-Build/ Design-Build Commence: Q1 F2017
Powertrain Balance of Plant Equipment Supply
Supply Contracts Commence: 2017 – 2018
Completion Contract (Powertrain Balance of Plant Equipment Installation)
Install Contract Commence: 2019
Electrical and Transmission Infrastructure
Transmission Lines contract Design-Bid-Build Various, through F2017
Site C substation contract Design-Bid-Build F2017
Peace Canyon Substation upgrade contract
Design-Build Contract Award: Q1 F2017
Highway 29 Realignment
Design-Bid-Build in partnership with B.C. Ministry of Transportation and Infrastructure with anticipated award of the first contracts in 2017 with subsequent contract being awarded through 2018 - 2019.
1.3.1 List of Major Contracts Awarded in the Quarter
Since inception of the Project, two major contracts (i.e., greater than $50 million in
value) have been awarded: Worker Accommodation and Site Preparation: North
Bank. Both contracts were procured through a public competitive process and
awarded based on a rigorous evaluation process within the budget established for
each contract. A list of contracts in excess of $50 million is shown in Table 10 below.
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F2016 Second Quarter – July 2015 to September 2015
Site C Clean Energy Project
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Table 10 Major Project Contracts Awarded
Work Package Contract Value
($ million)
Current Status
Site Preparation: North Bank 52 Contract executed July 2015.
Worker Accommodation 464 Contract executed September 2015
The major contracts expected to be awarded in the next three to six months include
the Main Civil Works and Turbine and Generators. Both of these work packages are
being procured through a public competitive process and are currently under
evaluation. In the fall of 2016, procurement of two major work packages will
commence; Generating Station and Spillway and Hydromechanical equipment.
1.3.2 Large Contracts to Date
BC Hydro has provided a table in Appendix B which shows the breakdown to date of
the contracts awarded in excess of $10 million and cumulative variances.
1.3.3 Contract Management
1.3.3.1 Material Changes to the Major Contracts
There have been no material changes to the Major contracts to date.
1.3.3.2 Contingency and Project Reserve Draws
A total of $85.9 million of project contingency has been approved for allocation to
work packages to date (refer to Table D-3 in Appendix D). The project budget
includes contingency of $620 million (in 2010 dollars), $679 million (in 2014 dollars),
or $794 million in nominal dollars (refer to Appendix D).
The project reserve is held by Treasury Board in the amount of $440 million. There
have been no draws on Treasury Board reserve to date.
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Site C Clean Energy Project
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1.4 Plans During Next Six Months
The key milestones for the next six months are listed in Table 11.
Table 11 Key Milestones
Milestone Plan Date2 Forecast Date Float
(months) Status
Limited Notice to Proceed for Major Civil Works November 2015 December 2015 -1 Delayed
Leave to Commence for Major Civil Works April 2016 April 2016 0 On Track
Peace River Temporary Bridge Complete May 2016 March 2016 2 Ahead of Plan
Worker Accommodation – Phase One February 2016 February 2016 0 On Track
Award Turbines & Generators Contract March 2016 March 2016 0 On Track
Site Clearing North Bank March 2016 March 2016 0 On Track
1.5 Impacts on Other BC Hydro Operations
For the reporting period, there were no material impacts on the generation operation
at the GM Shrum and Peace Canyon Dams or on water management at the Williston
and Dinosaur reservoirs.
1.6 Site Photographs
Refer to Table 12 for site construction photographs.
2 Based on plan at Final Investment Decision, December 2014.
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Site C Clean Energy Project
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2 Project Schedule
2.1 Project In Service Dates
BC Hydro currently shows all in service dates on track per Table 12.
Table 12 Project In-Service Dates
Description/Status Planned ISD3
Status and Comments
(e.g., complete, on schedule, delayed, possibly delayed,
probable delayed)
Peace Canyon Gas Insulated Switchgear February 2019 On Track
5L5 500 kV Transmission Line October 2020 On Track
Site C Substation November 2020 On Track
5L6 500 kV Transmission Line July 2023 On Track
Unit 1 (First Power) December 2023 On Track
Unit 2 February 2024 On Track
Unit 3 May 2024 On Track
Unit 4 July 2024 On Track
Unit 5 September 2024 On Track
Unit 6 November 2024 On Track
The approved Final Investment Decision schedule involved the first unit coming into
service in December 2023. Subsequent to the decision, activities have been
accelerated in order to mitigate schedule risk.
3 Based on plan at Final Investment Decision, December 2014.
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Site C Clean Energy Project
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3 Project Costs and Financing
3.1 Project Budget Summary
Table 13 below presents the overall Project Budget, based on the Final Investment
Decision (December 2014), represented in nominal dollars.
Table 13 Project Budget Summary
Description Capital Amount (Nominal $ million)
Dam, Power Facilities, and Associated Structures 4,120
Offsite Works, Management and Services 1,575
Total Direct Construction Cost 5,695
Indirect Costs 1,235
Total Construction and Development Cost 6,930
Interest During Construction 1,405
Project Cost, before Treasury Board Reserve 8,335
Treasury Board Reserve 440
Total Project Cost 8,775
3.2 Project Expenditure Summary
Table 14 provides a summary of the Board approved total Project cost, the current
forecast total Project cost and the variance between the two; and the plan to date
amounts based on the Board approved cost schedule, the actual costs to date and
the variance between the two.
Table 14 Total Project Expenditure Summary (Nominal $ million)
Description Board Approved
(Plan)
Forecast Forecast vs Plan
Plan to Date
Actuals to Date
Actuals vs Plan to
Date
Total Project Costs1 8,335 8,335 - 502 522 (20)
Treasury Board Reserve
440 440 - - - -
Authorized Project Cost
8,775 8,775 - 502 522 (20)
1 Includes Net Book Value of Impact Benefits Agreements (IBA)-related costs.
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Site C Clean Energy Project
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Variances are primarily due to commencement of some design and site preparation
efforts earlier than scheduled, offset by delays in purchase of properties. Further
explanations are in the confidential filing of the cost breakdown in Appendix D.
3.3 Internal Project Financing versus External Borrowings To Date
To date, all project funding has been from internal borrowings. There have been
several discussions with BC Hydro’s Board, the Debt Management Branch, the past
Deputy Minister of Finance and Treasury Board Staff on a debt hedging strategy for
BC Hydro’s borrowing requirements (which include expenditures related to Site C)
over a ten-year period. In addition to portfolio adjustments that are currently being
implemented whereby BC Hydro is reducing its exposure to variable rate debt and
increasing its issuance of fixed rate debt, a strategy has been developed that
recommends hedging 50 per cent of BC Hydro’s future forecasted borrowing
requirements from F2017-F2024 through the use of derivative contracts. A decision
has been made to apply to the British Columbia Utilities Commission (BCUC) for a
new Debt Management Regulatory Account that will capture the mark to market
gains and losses related to the hedging of future debt issuance. BC Hydro is
currently working on the application and plans to file with the BCUC in
December 2015.
4 Material Project Risks
This section describes the material Project risks that have high residual exposure to
BC Hydro. Commercially sensitive numbers and content, and/or content that could
be seen to prejudice BC Hydro’s negotiating position, are redacted in the public
version. Note that the residual consequence and residual probability levels are
qualitative assessments. Refer to Table 15 for a list of risks.
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Site C Clean Energy Project
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Table 15 Material Project Risks
Risk Event / Description
Risk and Response Summary Trend in Risk Exposure
Delay to Permitting
Permits and licences are still required for several portions of construction activity. Delays to these permits and licences will result in delays to the associated construction work. BC Hydro continues to consult with federal and provincial authorities, local government and First Nations to mitigate this risk. Awaiting the outcome of the judicial review of permits as described below. If BC Hydro is unsuccessful, this could result in a delay to the work underway and claims arising.
Litigation BC Hydro, the Province, and the Federal Government have all been subject to legal proceedings seeking to overturn the Environmental Assessment Certificate, the Federal Decision Statement, and specific permits. The governments and BC Hydro have been successful in five proceedings to date (four judicial reviews and one injunction application dismissed). Three appeals have been filed in respect of the judicial review decisions (one federal and two provincial). A judicial review of the provincial permits issued in summer 2015 was also filed and will be heard in November 2015.
The B.C. Building Trades union filed a lawsuit regarding the labour approach to Site C. However, this lawsuit is on hold as a result of the signing of a Memorandum of Understanding (refer to Labour Relations below) and has not progressed to a hearing.
There is a potential for additional legal proceedings. If any are successful, there may be delays.
First Nations BC Hydro has reached agreement with two First Nations on IBA term sheets, with ratification by the First Nations. One other First Nation has signed a term sheet but has since indicated they will not hold to it.
BC Hydro is in active negotiations with four other First Nations on IBAs and has circulated draft IBA term sheets to these First Nations.
Note that progress on IBAs with First Nations reduces the potential for future legal proceedings.
Market response to procurement
If strong competition does not occur during procurement, there could be higher premiums, mark ups and overall prices on labour and materials. Risk has been mitigated via market soundings, robust Request For Quotation process, honorariums for successful bidders, etc. All three major procurement processes initiated to date (WA, MCW, T&G) have had excellent response with two procurements now in the Request for Proposal evaluation stage and one contract awarded. Market response risk will continue to be monitored and could be impacted if the project construction start is delayed significantly.
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Risk Event / Description
Risk and Response Summary Trend in Risk Exposure
Labour Relations & Stability
BC Hydro is using an inclusive labour approach with a managed open site. This allows for participation by all union and non-union labour groups and allows access to the largest pool of skilled and experienced labour.
BC Hydro and B.C. Building Trades secured an agreement to achieve labour stability and a mix of labour representation on site, including building trades unions. BC Hydro agreed to provide greater weight on bids with a mix of labour representation (including Building Trades unions) to the extent that it adds to labour stability. B.C. Building Trades agreed to no strike, no lockout, and no raiding provisions for work done by the Building Trades on the Main Civil Works contract.
BC Hydro has noted active organization attempts by several labour organizations regarding work underway at the project site. This activity creates a risk of a work disruption or complaints to the Labour Relations Board. BC Hydro is managing this risk through consistent treatment of all labour organizations and ensuring that organization activities do not occur on the project site itself except as provided for under the Labour Relations Code.
BC Hydro will have more information on this risk when the preferred proponent (and the accompanying labour strategy) is identified for the Main Civil Works contract.
Geotechnical risks
Key Geotechnical risks include unexpected shears encountered during construction; deeper than expected relaxation joints; bedding planes worse than expected; larger than expected deterioration of shale bedrock once exposed during construction; and Rock Rebound/Swell.
Current strategies to mitigate geotechnical risks include:
Complete field investigations to aid in the identification of shears, relaxation joints, and bedding planes.
Use of conservative design principles for the slope of excavation surfaces, grout curtains, and shear strength assumptions.
Transfer some degree of ground condition risks to the Contractor.
Design contracts which allow the contractor to respond to unexpected ground conditions (potentially through pre-agreed pricing).
Conduct field-scale trials to determine the response when shale bedrock is exposed to the elements.
These risks have not changed substantially since Final Investment Decision (FID) as there has not been sufficient excavation to date. Once the MCW contract is underway and beginning excavation BC Hydro will have additional information about this risk.
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Risk Event / Description
Risk and Response Summary Trend in Risk Exposure
Construction cost – labour
Potential cost increases could arise if there is competition with other projects for labour resources, labour instability, or changing workforce demographics. BC Hydro is partially mitigating this risk through regional job fairs to increase local participation and investments in skills training ($1.5 million invested to date). This risk is also partially mitigated by consideration of labour stability during contractor selection.
Based on current market conditions in the infrastructure and energy sector BC Hydro believes that the risk of unexpectedly high labour prices has decreased. There remains the potential for market conditions to shift in the future and this risk to increase.
BC Hydro anticipates having more information on this risk in mid to late 2016 once the Main Civil Works contractor has progressed on recruitment.
Construction cost – commodities and equipment
Potential cost increases could arise if market prices for key commodities and equipment increase, or if overall market activity results in higher contractor profit margins.
BC Hydro has completed procurement for several contracts associated with early works and the Worker Accommodation, and does not see early indications on market price pressures at this point. More information will be available upon conclusion of other major contracts (MCW, T&G)
BC Hydro retains exposure to fuel prices (generally diesel), which have decreased compared to prices in the budget. Fuel prices may increase in the future due to global market forces. BC Hydro will consider the potential to hedge these prices, where appropriate.
Canada has applied a duty to rebar from specific countries that may add approximately $20 million in cost to the Site C project. The risk of this duty is subject to a Trade Tribunal decision that is expected to be rendered later this year. Any incremental costs relating to the Trade Tribunal decision would be accommodated through allocations from Project Contingency or Treasury Board reserve, as appropriate.
Based on current market conditions in the infrastructure and energy sector BC Hydro believes that the risk of unexpectedly high market prices has decreased. There remains the potential for market conditions to shift in the future and this risk to increase.
BC Hydro anticipates having more information on this risk in early to mid-2016 once the Main Civil Works contractor has been selected.
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Risk Event / Description
Risk and Response Summary Trend in Risk Exposure
Construction execution.
Contractors may be unable to execute successfully on scope of contract with resulting costs to BC Hydro. Mitigation is via:
Robust procurement processes to determine whether contractors have the capability to undertake their scope of work
A cross-functional construction readiness review to confirm contractor and BC Hydro readiness before authorizing the start on any specific scope of work
BC Hydro increased on site supervision to address recent environmental compliance issues
BC Hydro step-in rights under contracts to allow for correction in the case of contractor failure
Foreign exchange
Some of Site C project costs are in foreign currency, and will be affected by fluctuations in the exchange rate between the Canadian Dollar and these foreign currencies. Approximately 20 per cent of the Site C capital costs are based on foreign currency.
The Canadian dollar has weakened significantly compared to the US dollar since the 2014 capital cost estimate was developed, and as a result this risk has increased. This is partially mitigated through contractor flexibility around sourcing of material, resulting in an exposure to a basket of currencies rather than solely the US dollar.
This risk will be further mitigated through BC Hydro contract design that allocates the majority of foreign exchange risk to the contractors. As a result, upon receipt of pricing for each contract foreign exchange risk will decrease.
Interest rate variability
Interest during construction costs will be affected by fluctuations in market interest rates. Currently market interest rates are expected to be lower than assumed in BC Hydro’s budget.
There have been several discussions with BC Hydro’s board, the Debt Management Branch, the past Deputy Minister of Finance and Treasury Board Staff on a debt hedging strategy for BC Hydro’s borrowing requirements (which include expenditures related to Site C) over a 10-year period. In addition to portfolio adjustments that are currently being implemented whereby BC Hydro is reducing its exposure to variable rate debt and increasing its issuance of fixed rate debt, a strategy has been developed that recommends hedging 50 per cent of BC Hydro’s future forecasted borrowing requirements from F2017-F2024 through the use of derivative contracts. A decision has been made to apply to the BCUC for a new Debt Hedging Regulatory Account that will capture the gains and losses related to the hedging of future debt issuance. BC Hydro is currently working on the application and plans to file with the BCUC in November 2015.
Site C Clean Energy Project
Quarterly Progress Report No. 1
Appendix A
Site Photographs
Quarterly Progress Report No. 1 F2016 Second Quarter – July 2015 to September 2015
Appendix A
Site C Clean Energy Project Page 1 of 3
Figure A-1 Excavation Area on the Left Bank
Figure A-2 Excavation of Material; Part of the Left Bank Stabilization on the North Bank of the Site C Dam Site
Quarterly Progress Report No. 1 F2016 Second Quarter – July 2015 to September 2015
Appendix A
Site C Clean Energy Project Page 2 of 3
Figure A-3 Temporary Camp in Place, until Main Camp Complete
Quarterly Progress Report No. 1 F2016 Second Quarter – July 2015 to September 2015
Appendix A
Site C Clean Energy Project Page 3 of 3
Figure A-4 Worker Camp under Construction: Crews Installing Foundation Piles
Figure A-5 Work on Access Roads and Site Preparation for the Worker Camp
Site C Clean Energy Project
Quarterly Progress Report No. 1
Appendix B
Summary of Individual Contracts
Exceeding $10 million
PUBLIC
Quarterly Progress Report No. 1 F2016 Second Quarter – July 2015 to September 2015
PUBLIC Appendix B
Site C Clean Energy Project Page 1 of 1
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Quarterly Progress Report No. 1
Appendix C
Project Progression
PUBLIC
Quarterly Progress Report No. 1 F2016 Second Quarter – July 2015 to September 2015
PUBLIC Appendix C
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Quarterly Progress Report No. 1
Appendix D
Detailed Project Expenditures
PUBLIC
Quarterly Progress Report No. 1 F2016 Second Quarter – July 2015 to September 2015
PUBLIC Appendix D
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Appendix E
Workforce Overview
PUBLIC
CONFIDENTIAL ATTACHMENT
FILED WITH BCUC
ONLY